Texas Business Organizations Code - Section 200.111. Preformation Subscription
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§ 200.111. PREFORMATION SUBSCRIPTION. (a) A real estate
investment trust may determine the payment terms of a preformation
subscription unless the payment terms are specified by the
subscription. The payment terms may authorize payment in full on
acceptance or by installments.
(b) Unless the subscription provides otherwise, a real
estate investment trust shall make calls placed to all subscribers
of similar interests for payment on preformation subscriptions
uniform as far as practicable.
(c) After the real estate investment trust is formed, if a
subscriber fails to pay any installment or call when due, the real
estate investment trust may:
(1) collect in the same manner as any other debt the
amount due on any unpaid preformation subscription; or
(2) forfeit the subscription if the installment or
call remains unpaid for 20 days after written notice to the
subscriber.
(d) Although the forfeiture of a subscription terminates
all the rights and obligations of the subscriber, the real estate
investment trust may retain any amount previously paid on the
subscription.
Acts 2003, 78th Leg., ch. 182, § 1, eff. Jan. 1, 2006.
Section: 200.104 200.105 200.106 200.107 200.108 200.109 200.110 200.111 200.112 200.113 200.151 200.152 200.153 200.154 200.155
Last modified: August 11, 2007
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